Horta vows to rebuild Timor

NOBEL laureate Jose Ramos-Horta plans to make radical changes in
East Timor after being sworn in today as the caretaker Prime
Minister.

The plans include creating new satellite townships on the
western and eastern outskirts of the capital Dili to encourage
people to move out of squalid refugee camps.

Mr Ramos-Horta has spoken privately about the urgent need to
create an environment where an estimated 150,000 people living in
the camps feel safe to leave after two months of violence and
protests in Dili.

He believes that people with family ties in the eastern part of
the country, who have been targeted by mobs from western parts,
would feel safe in a township on the eastern outskirts of Dili.

The Government has already promised to rebuild hundreds of homes
that have been destroyed since East Timor plunged into crisis when
the then prime minister Mari Alkatiri sacked almost half the army
after they had protested against discrimination.

Mr Ramos-Horta spoke about what he would do if he became prime
minister at a private dinner in Dili on July 1, which was attended
by The Age.

He made clear that as an independent unshackled by party
loyalties, he would seize the opportunity to introduce sweeping
changes to the country.

Mr Ramos-Horta talked about the need to cut bureaucratic red
tape in government departments and plans to call a meeting of
business people in Dili to discuss ways to provide better security
for foreign investments.

He also plans to order an immediate audit of government
departments that have developed a culture of corruption.

Mr Ramos-Horta believes the country can quickly recover.

The Parliament is set to pass a $US315 million ($A419 million)
budget, its biggest ever.

But observers and diplomats say that Mr Ramos-Horta faces a
tough job uniting the country's political elite, settling the
grievances of the sacked soldiers, rebuilding a police force that
disintegrated last month and winning the support of Fretilin, still
the most powerful political institution in the country.

President Xanana Gusmao announced late on Saturday that
56-year-old Mr Ramos-Horta, East Timor's former global campaigner
who won the Nobel peace prize in 1996, will lead the country until
national elections scheduled for around next May.

He will publicly detail his plans in a speech today.

As foreign and defence minister, Mr Ramos-Horta has for weeks
tried to salvage order out of East Timor's chaos, acting as
intermediary with disgruntled soldiers and police.

He has also negotiated with feuding politicians including Mr
Alkatiri, who was forced to resign over allegations that he helped
form a hit squad to eliminate political rivals.

Mr Ramos-Horta was Mr Gusmao's first choice for the job.

He was acceptable to Fretilin, the majority party, which wanted
to name one of its own but had to bow to Mr Gusmao, the popular
hero of the country's independence struggle, who threatened to quit
unless Mr Alkatiri was removed from office.

Mr Ramos-Horta made the same threat.

Although a founding member of Fretilin, Mr Ramos-Horta resigned
his membership 18 years ago.

Mr Gusmao named two stand-out ministers in Mr Alkatiris
government as deputy prime ministers in a deal negotiated with
Fretilin.

They are Agriculture Minister Estanislau da Silva, a top
Fretilin official who spent many years working in Australia, and
Health Minister Rui Araujo.

Mr Alkatiri has been summoned to appear in court on July 20 to
answer questions over the hit squad allegations. He failed to turn
up at a court hearing last month.